US Market News
4週前
Universal Electronics Reports Financial Results for the First Quarter 2026May 11, 2026 4:05 PM
Business Wire Universal Electronics Inc. (UEI) (Nasdaq: UEIC) reported financial results for the three months ended March 31, 2026. "Q1 results were broadly consistent with the operating environment we anticipated, reinforcing the decisive actions we took last quarter to strategically restructure and refocus the business,” said Richard Carnifax, Interim CEO and COO. “We are already seeing tangible progress in the areas within our control, including a $5.3 million year-over-year reduction in operating expenses and approximately $9.8 million of inventory reduction. Our full-year framework is grounded in disciplined execution — aligning our cost structure, sharpening our portfolio focus and maintaining rigorous working capital management — rather than relying on a near-term recovery in demand. We remain focused on enhancing profitability, generating sustainable cash flow and strengthening the operational and financial flexibility necessary to position UEI for greater long-term resilience and success." Financial Results for the Three Months Ended March 31, 2026 compared to the same period in 2025 In Q1 2026, we significantly reduced our operational costs improving our ability to generate profits going forward. GAAP operating expenses decreased by $5.3 million, and Adjusted non-GAAP operating expenses were down $5.3 million. GAAP net sales were $79.0 million, compared to $92.3 million. GAAP net sales in connected home were $28.3 million, compared to $31.7 million. GAAP net sales in home entertainment were $50.7 million, compared to $60.6 million. GAAP gross margins were 26.1%, compared to 28.3%; Adjusted non-GAAP gross margins were 26.1%, compared to 28.3%. GAAP operating loss was $3.9 million, compared to GAAP operating loss of $3.8 million; Adjusted non-GAAP operating loss was $1.7 million, compared to Adjusted non-GAAP operating loss of $1.5 million. GAAP net loss was $7.3 million, or $0.58 per share, compared to $6.3 million, or $0.48 per share; Adjusted non-GAAP net loss was $1.3 million, or $0.10 per diluted share, compared to Adjusted non-GAAP net loss of $1.5 million, or $0.12 per diluted share. At March 31, 2026, cash and cash equivalents were $29.8 million. For a more detailed explanation of non-GAAP financial measures, please refer to the "Use of Non-GAAP Financial Metrics" and "Reconciliation of Adjusted Non-GAAP Financial Results" located elsewhere in this press release. Financial Outlook Now that Q1 is behind us, we have greater visibility into the year ahead, and we are pleased to reaffirm that our full-year 2026 guidance remains unchanged from our prior outlook. For the full year 2026, we are guiding to a revenue decline year over year. We expect adjusted non-GAAP diluted earnings per share to be in the range of $0.45 to $0.65, compared to $0.31 per share in fiscal 2025. Conference Call Information UEI’s management team will hold a conference call today, Monday, May 11, 2026 at 4:30 p.m. ET / 1:30 p.m. PT, to discuss its first quarter 2026 earnings results, review recent activity and answer questions. To attend the call please register at: https://edge.media-server.com/mmc/p/m9tj5ahs/ to receive a computer-generated dial-in number and a unique pin number. The conference call will also be broadcast live on the investor section of the UEI website where it will be available for replay for 90 days. Use of Non-GAAP Financial Metrics In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, UEI provides Adjusted non-GAAP information as additional information for its operating results. References to Adjusted non-GAAP information are to non-GAAP financial measures. These measures are not required by, in accordance with, or an alternative for, GAAP and may be different from non-GAAP financial measures used by other companies. UEI’s management uses these measures for reviewing the financial results of UEI for budget planning purposes and for making operational and financial decisions. Management believes that providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, help investors evaluate UEI’s core operating and financial performance and business trends consistent with how management evaluates such performance and trends. Additionally, management believes these measures facilitate comparisons with the core operating and financial results and business trends of competitors and other companies. Adjusted non-GAAP gross profit is defined as gross profit excluding stock-based compensation expense. Adjusted non-GAAP operating expenses are defined as operating expenses excluding stock-based compensation expense, amortization of intangibles acquired, and severance. Adjusted non-GAAP net income (loss) is defined as net loss excluding the aforementioned items, foreign currency gains and losses, and the related tax effects of all adjustments, as well as valuation allowances on certain deferred tax assets and certain net deferred tax adjustments. Adjusted non-GAAP earnings (loss) per diluted share is calculated using Adjusted non-GAAP net income (loss). A reconciliation of these financial measures to the most directly comparable GAAP financial measures is included at the end of this press release. We do not provide a reconciliation for forward-looking non-GAAP financial metrics because reconciliation information is not available without unreasonable effort, such as attempting to make assumptions that cannot reasonably be made on a forward-looking basis to determine the corresponding GAAP metric. About Universal Electronics Universal Electronics Inc. (Nasdaq: UEIC) is the global leader in wireless universal control solutions for the home. The company brings to life millions of innovative control products each year that focus on a user-centric approach to building control products and applications that simplify user interaction with highly complex technologies in the home, removing interoperability challenges as a roadblock for user adoption, with privacy first and a secure by design approach to today's smart devices. Our products are offered by the world's leading brands in home entertainment and the connected home markets, including Fortune 500 customers Daikin, Carrier, Comcast, Vivint Smart Home, Samsung, Sony, Hunter Douglas and Somfy. The company's pioneering breakthrough innovations include its award-winning voice control entertainment remote controls and QuickSet Cloud, the world's leading platform for automated device and service discovery, set-up and control, and user experience personalization for the home. For more information, visit www.uei.com. Forward-looking Statements This press release contains "forward-looking statements" within the meaning of federal securities laws, including statements about our future financial results, anticipated trends in our business and market conditions; our expectations about new product introductions; our expectation that strategic actions can structurally reduce working capital and free up more cash from operations; our plans to align our cost structure to market realities to materially generate improved profits over last year; our focus, strategy and business plans; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those we identify below and other risk factors that we identify in our annual report on Form 10-K for the year ended December 31, 2025 and the periodic reports filed and furnished since then. Risks that could affect forward-looking statements in this press release include: our continued ability to timely develop and deliver innovative control solutions and technologies that are accepted by our customers, both near- and long-term; our ability to attract new customers and to successfully capture sales in all markets we serve, including in the climate control and connected home markets as anticipated by management; our ability to continue optimizing our manufacturing footprint and realize the lower concentration risks as expected by management; our ability to maintain our market share in the traditional subscription broadcast market; our ability to manage through the worldwide inflationary pressures and macroeconomic conditions; our ability to successfully execute our strategic actions and plans; our ability to continue to manage our business, inventories and cash flows to achieve our net sales, margins and earnings through financial discipline, operational efficiency, product line management, liquidity requirements, capital expenditures and other investment spending expectations; our continued ability to successfully enforce our patented technology, including with respect to our litigation against Roku; our continued ability to strategically enhance, expand, and monetize our IP portfolios; the continued fluctuation in our market capitalization; the use of artificial intelligence applications which could result in cybersecurity incidents that implicate the personal data of end users or other unintended ethical, reputational, competitive harm or legal liability; the direct and indirect impact we may experience with respect to our business and financial results and management’s ability to anticipate and mitigate the impact stemming from the continued economic uncertainty affecting consumers’ confidence and spending, natural disasters or other events beyond our control, public health crises (including an outbreak of infectious disease), governmental actions, including the changes in or enhanced use of laws, regulations and policies may have on our business including the impact of decreased governmental incentive programs worldwide or of enhanced or expanded trade regulations, including the expanded use of tariffs, pertaining to importation of our products, the effects of political unrest, war, terrorist activities, or other hostilities; the effects and uncertainties and other factors more fully described in our reports filed with the SEC. Since it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results, the above list should not be considered a complete list. Further, any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release. We make these forward-looking statements as of the date hereof, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law or regulation. UNIVERSAL ELECTRONICS INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share-related data) (Unaudited) March 31, 2026 December 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 29,826 $ 32,306 Accounts receivable, net 76,858 79,320 Contract assets 7,323 8,091 Inventories 67,994 77,793 Prepaid expenses and other current assets 6,577 6,803 Income tax receivable 765 806 Total current assets 189,343 205,119 Property, plant and equipment, net 26,510 27,600 Intangible assets, net 21,130 21,968 Operating lease right-of-use assets 10,909 10,203 Deferred income taxes 3,572 5,496 Other assets 3,678 3,611 Total assets $ 255,142 $ 273,997 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 43,979 $ 48,945 Lines of credit 23,207 24,079 Accrued compensation 16,581 17,496 Accrued sales discounts, rebates and royalties 3,833 6,132 Accrued income taxes 2,507 2,524 Other accrued liabilities 16,265 20,134 Total current liabilities 106,372 119,310 Long-term liabilities: Operating lease obligations 7,276 6,193 Deferred income taxes 1,370 1,507 Income tax payable 74 74 Other long-term liabilities 727 729 Total liabilities 115,819 127,813 Commitments and contingencies Stockholders’ equity: Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding — — Common stock, $0.01 par value, 50,000,000 shares authorized; 26,168,633 and 26,146,367 shares issued on March 31, 2026 and December 31, 2025, respectively 262 261 Paid-in capital 350,990 350,222 Treasury stock, at cost, 13,537,944 and 13,537,944 shares on March 31, 2026 and December 31, 2025, respectively (375,016 ) (375,016 ) Accumulated other comprehensive income (loss) (19,413 ) (19,115 ) Retained earnings 182,500 189,832 Total stockholders’ equity 139,323 146,184 Total liabilities and stockholders’ equity $ 255,142 $ 273,997 UNIVERSAL ELECTRONICS INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2026 2025 Net sales $ 79,036 $ 92,326 Cost of sales 58,436 66,243 Gross profit 20,600 26,083 Research and development expenses 5,451 7,231 Selling, general and administrative expenses 19,049 22,606 Operating income (loss) (3,900 ) (3,754 ) Interest income (expense), net (94 ) (353 ) Other income (expense), net 227 52 Income (loss) before provision for income taxes (3,767 ) (4,055 ) Provision for income taxes 3,565 2,219 Net income (loss) $ (7,332 ) $ (6,274 ) Earnings (loss) per share: Basic $ (0.58 ) $ (0.48 ) Diluted $ (0.58 ) $ (0.48 ) Shares used in computing earnings (loss) per share: Basic 12,619 13,083 Diluted 12,619 13,083 UNIVERSAL ELECTRONICS INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Three Months Ended March 31, 2026 2025 Cash flows from operating activities: Net income (loss) $ (7,332 ) $ (6,274 ) Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: Depreciation and amortization 3,066 4,051 Provision for credit losses — 19 Deferred income taxes 1,837 (90 ) Shares issued for employee benefit plan and compensation 1 159 Employee and director stock-based compensation 768 1,784 Gain on sale of property, plant, and equipment 41 — Changes in operating assets and liabilities: Accounts receivable and contract assets 2,752 10,514 Inventories 9,842 2,956 Prepaid expenses and other assets (572 ) (58 ) Accounts payable and accrued liabilities (11,179 ) (5,298 ) Accrued income taxes (5 ) 1,221 Net cash provided by (used for) operating activities (781 ) 8,984 Cash flows from investing activities: Purchase of Blue Chip Swap securities — (1,250 ) Sale of Blue Chip Swap securities — 1,088 Acquisitions of property, plant and equipment (765 ) (1,042 ) Acquisitions of intangible assets (403 ) (703 ) Net cash provided by (used for) investing activities (1,168 ) (1,907 ) Cash flows from financing activities: Borrowings under lines of credit 18,000 18,000 Repayments on lines of credit (19,100 ) (24,000 ) Treasury stock purchased — (383 ) Net cash provided by (used for) financing activities (1,100 ) (6,383 ) Effect of foreign currency exchange rates on cash and cash equivalents 569 (88 ) Net increase (decrease) in cash and cash equivalents (2,480 ) 606 Cash and cash equivalents at beginning of period 32,306 26,783 Cash and cash equivalents at end of period $ 29,826 $ 27,389 Supplemental cash flow information: Income taxes paid $ 1,377 $ 1,161 Interest paid $ 331 $ 635 UNIVERSAL ELECTRONICS INC. RECONCILIATION OF ADJUSTED NON-GAAP FINANCIAL RESULTS (In thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2026 2025 NET SALES: Net sales - GAAP $ 79,036 $ 92,326 Adjusted Non-GAAP net sales $ 79,036 $ 92,326 Cost of sales: Cost of sales - GAAP $ 58,436 $ 66,243 Stock-based compensation expense (13 ) (16 ) Adjusted non-GAAP cost of sales 58,423 66,227 Adjusted non-GAAP gross profit $ 20,613 $ 26,099 Gross margin: Gross margin - GAAP 26.1 % 28.3 % Stock-based compensation expense 0.0 % 0.0 % Adjusted non-GAAP gross margin 26.1 % 28.3 % Operating expenses: Operating expenses - GAAP $ 24,500 $ 29,837 Stock-based compensation expense (755 ) (1,768 ) Amortization of acquired intangible assets (207 ) (219 ) Severance (1) (1,275 ) (275 ) Adjusted non-GAAP operating expenses $ 22,263 $ 27,575 Operating income (loss): Operating income (loss) - GAAP $ (3,900 ) $ (3,754 ) Stock-based compensation expense 768 1,784 Amortization of acquired intangible assets 207 219 Severance (1) 1,275 275 Adjusted non-GAAP operating income (loss) $ (1,650 ) $ (1,476 ) Adjusted pro forma operating income (loss) as a percentage of net sales (2.1 )% (1.6 )% UNIVERSAL ELECTRONICS INC. RECONCILIATION OF ADJUSTED NON-GAAP FINANCIAL RESULTS (In thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2026 2025 Net income (loss): Net income (loss) - GAAP $ (7,332 ) $ (6,274 ) Stock-based compensation expense 768 1,784 Amortization of acquired intangible assets 207 219 Severance (1) 1,275 275 Foreign currency (gain)/loss (82 ) (196 ) Income tax provision on adjustments 3,883 2,643 Adjusted non-GAAP net income (loss) $ (1,281 ) $ (1,549 ) Diluted shares used in computing earnings (loss) per share: GAAP 12,619 13,083 Adjusted non-GAAP 12,619 13,083 Diluted earnings (loss) per share: Diluted earnings (loss) per share - GAAP $ (0.58 ) $ (0.48 ) Total adjustments $ 0.48 $ 0.36 Adjusted non-GAAP diluted earnings (loss) per share $ (0.10 ) $ (0.12 ) (1) The three months ended March 31, 2026 includes severance costs associated with a global reduction in force primarily impacting roles within the selling and general administration functions as well as engineering and research and development functions. Additionally, the three months ended March 31, 2025 includes severance per the Transition Agreement and Release of Claims dated March 19, 2025 between Paul D. Arling and the Company. View source version on businesswire.com: https://www.businesswire.com/news/home/20260511927280/en/ UEI: Wade Jenke, CFO, UEI,
US Market News
3月前
Universal Electronics Reports Fourth Quarter and Year-End 2025 Financial ResultsMarch 12, 2026 4:05 PM
Business Wire
FY 2025 cash flow from operations was $23.6 million;
Q4 2025 stock buyback plan repurchased 765,201 shares or 5.8% of shares outstanding
Universal Electronics Inc. (UEI), (Nasdaq: UEIC) reported financial results for the three and twelve months ended December 31, 2025.
"Q4 and 2025 overall was defined by decisive action, operational discipline, and measurable progress toward putting UEI back on the path toward profitability – delivering the company’s first profitable year since 2022 on a non-GAAP basis. Looking ahead, Home Entertainment is a mature business where the legacy revenue trends are well understood while the Connected Home revenue inflection is taking longer than expected. Given this set of market conditions, we are restructuring and refocusing the company to improve efficiency in operations, improve profitability and generate increased. levels of cash flow. In FY 2026 we will be manically focused on improving profits and cash flow. We believe this is the right path forward to provide us with a better foundation for durable growth over time," said Richard Carnifax, UEI Interim CEO and COO.
Board of Directors approves increase to stock buyback program by up to 1 million shares
On March 11, 2026 UEI’s Board of Directors unanimously approved an amendment to UEI’s share repurchase program authorizing the repurchase, from time to time, of up to 1 million additional shares. Under UEI's previous share repurchase program, the company purchased a total of $3.1 million of UEIC stock during the year ended December 31, 2025.
Financial Results for the Three Months Ended December 31, 2025 Compared to 2024
Our operational focus on efficiency and savings plus positive mix helped yield improved gross margins up 1.3 points.
In Q4 2025, we significantly reduced our operational costs improving our ability to generate profits going forward. GAAP operating expenses decreased by $10.5 million, and Adjusted non-GAAP operating expenses were down $4.4 million.
The company share repurchase program repurchased $2.3 million, or 5.8% of our total shares outstanding.
GAAP net sales were $87.7 million, compared to $110.5 million.
GAAP net sales in connected home were $29.7 million, compared to $34.4 million.
GAAP net sales in home entertainment were $58.0 million, compared to $76.1 million.
GAAP gross margin was 29.7%, compared to 28.4%; Adjusted non-GAAP gross margin was 29.7%, compared to 28.4%.
GAAP operating income was $0.9 million, compared to an operating loss of $4.4 million; Adjusted non-GAAP operating income was $3.3 million, compared to $4.2 million.
GAAP net loss was $1.1 million, or $0.08 loss per share, compared to a net loss of $4.5 million, or $0.35 per share; Adjusted non-GAAP net income was $2.3 million, or $0.17 per diluted share, compared to Adjusted non-GAAP net income of $2.6 million, or $0.20 per share.
At December 31, 2025, cash and cash equivalents were $32.3 million.
Financial Results for the Twelve Months Ended December 31, 2025 Compared to 2024
GAAP net sales were $368.3 million, compared to $394.9 million.
GAAP net sales in connected home were $125.4 million, compared to $108.3 million.
GAAP net sales in home entertainment were $242.9 million, compared to $286.6 million.
GAAP gross margin was 28.9%, compared to 28.9% in the prior year; Adjusted non-GAAP gross margin was 29.2%, compared to 28.9%.
Continued focus on cost saving activities resulted in GAAP operating expenses decreasing by $16.4 million, and yielding a reduction of $10.5 million in Adjusted non-GAAP operating expenses.
GAAP operating loss was $6.4 million, compared to $15.3 million in the prior year. Adjusted non-GAAP operating income was $6.3 million, compared to $2.2 million.
GAAP net loss was $18.6 million, or $1.41 loss per share, compared to $24.0 million, or $1.85 loss per share, Adjusted non-GAAP net income was $4.2 million, or $0.31 per share, compared to an Adjusted non-GAAP net loss of $0.6 million, or $0.05 per share.
For a more detailed explanation of non-GAAP measures, please see the Use of Non-GAAP Financial Metrics discussion, the Reconciliation of Adjusted Non-GAAP Financial Results located elsewhere in this press release.
Financial Outlook
For fiscal year 2026, our revenue expectations are tempered as home entertainment has secular market headwinds and the connected home products have yet to reach an inflection point. Our expectation for revenue is a decline year over year.
We expect to rapidly reduce operational costs to increase profits given the revenue uncertainty. We plan to align our cost structure to market realities to generate improved profits over last year. Strategic actions are expected to structurally reduce working capital and free up more cash from operations. Adjusted non-GAAP dilutive earnings per share is expected to range from $0.45 to $0.65 compared to Adjusted non-GAAP earnings of $0.31 per share in fiscal year 2025.
Conference Call Information
UEI’s management team will hold a conference call today, Thursday, March 12, 2026 at 4:30 p.m. ET / 1:30 p.m. PT, to discuss its fourth quarter and full year 2025 earnings results, review recent activity and answer questions. To attend the call please register at https://register-conf.media-server.com/register/BI5afc09c9bace4df5b9fcf0fcbb0b7220 to receive a computer-generated dial-in number and a unique pin number. The conference call will also be broadcast live on the investor section of the UEI website where it will be available for replay for 90 days.
Use of Non-GAAP Financial Metrics
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, UEI provides Adjusted non-GAAP information as additional information for its operating results. References to Adjusted non-GAAP information are to non-GAAP financial measures. These measures are not required by, in accordance with, or an alternative for, GAAP and may be different from non-GAAP financial measures used by other companies. UEI’s management uses these measures for reviewing the financial results of UEI for budget planning purposes and for making operational and financial decisions. Management believes that providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, help investors evaluate UEI’s core operating and financial performance and business trends consistent with how management evaluates such performance and trends. Additionally, management believes these measures facilitate comparisons with the core operating and financial results and business trends of competitors and other companies.
Adjusted non-GAAP gross profit is defined as gross profit excluding impairment of long-lived assets and stock-based compensation expense. Adjusted non-GAAP operating expenses are defined as operating expenses excluding impairment of long-lived assets, stock-based compensation expense, amortization of intangibles acquired, costs associated with certain litigation efforts, factory restructuring costs, legal judgment, severance, lease termination costs and goodwill impairment. Adjusted non-GAAP net income (loss) is defined as net loss excluding the aforementioned items, foreign currency gains and losses, the related tax effects of all adjustments, as well as valuation allowances on certain deferred tax assets and certain net deferred tax adjustments. Adjusted non-GAAP earnings (loss) per diluted share is calculated using Adjusted non-GAAP net income (loss). A reconciliation of these financial measures to the most directly comparable GAAP financial measures is included at the end of this press release. We do not provide a reconciliation for forward-looking non-GAAP financial metrics because reconciliation information is not available without unreasonable effort, such as attempting to make assumptions that cannot reasonably be made on a forward-looking basis to determine the corresponding GAAP metric.
The company will no longer exclude excess manufacturing overhead costs resulting from the continued transition of its global manufacturing footprint, specifically in Mexico and Vietnam, and depreciation related to the mark-up from cost to fair value of fixed assets acquired in business combinations from its Adjusted non-GAAP figures. This impacts Adjusted non-GAAP gross profit, Adjusted non-GAAP gross margin, Adjusted non-GAAP operating income (loss), Adjusted non-GAAP income (loss) before provision (benefit) from income taxes and net income (loss) in the quarterly results for 2024 and 2025. There is no impact to GAAP results. A reconciliation of these measures is posted on the website in the Q4 2025 Quarterly Results section. Historical period non-GAAP results have been adjusted to reflect this change and for consistent period-to-period comparisons.
About Universal Electronics
Universal Electronics Inc. (Nasdaq: UEIC) is the global leader in wireless universal control solutions for the home. The company brings to life millions of innovative control products each year that focus on a user-centric approach to building control products and applications that simplify user interaction with highly complex technologies in the home, removing interoperability challenges as a roadblock for user adoption, with privacy first and a secure by design approach to today's smart devices. Our products are offered by the world's leading brands in home entertainment and the connected home markets, including Fortune 500 customers Daikin, Carrier, Comcast, Vivint Smart Home, Samsung, Sony, Hunter Douglas and Somfy. The company's pioneering breakthrough innovations include its award-winning voice control entertainment remote controls and QuickSet Cloud, the world's leading platform for automated device and service discovery, set-up and control, and user experience personalization for the home. For more information, visit www.uei.com.
Forward-looking Statements
This press release contains "forward-looking statements" within the meaning of federal securities laws, including statements about our future financial results, anticipated trends in our business and market conditions; our expectations about new product introductions; our expectation that strategic actions can structurally reduce working capital and free up more cash from operations; our plans to align our cost structure to market realities to materially generate improved profits over last year; our focus, strategy and business plans; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those we identify below and other risk factors that we identify in our annual report on Form 10-K for the year ended December 31, 2024 and the periodic reports filed and furnished since then.
Risks that could affect forward-looking statements in this press release include: our continued ability to timely develop and deliver innovative control solutions and technologies that are accepted by our customers, both near- and long-term; our ability to attract new customers and to successfully capture sales in all markets we serve, including in the climate control and connected home markets as anticipated by management; our ability to continue optimizing our manufacturing footprint and realize the lower concentration risks as expected by management; our ability to maintain our market share in the traditional subscription broadcast market; our ability to manage through the worldwide inflationary pressures and macroeconomic conditions; our ability to successfully execute our strategic actions and plans; our ability to continue to manage our business, inventories and cash flows to achieve our net sales, margins and earnings through financial discipline, operational efficiency, product line management, liquidity requirements, capital expenditures and other investment spending expectations; our continued ability to successfully enforce our patented technology, including with respect to our litigation against Roku; our continued ability to strategically enhance, expand, and monetize our IP portfolios; the continued fluctuation in our market capitalization; the use of artificial intelligence applications which could result in cybersecurity incidents that implicate the personal data of end users or other unintended ethical, reputational, competitive harm or legal liability; the direct and indirect impact we may experience with respect to our business and financial results and management’s ability to anticipate and mitigate the impact stemming from the continued economic uncertainty affecting consumers’ confidence and spending, natural disasters or other events beyond our control, public health crises (including an outbreak of infectious disease), governmental actions, including the changes in or enhanced use of laws, regulations and policies may have on our business including the impact of decreased governmental incentive programs worldwide or of enhanced or expanded trade regulations, including the expanded use of tariffs, pertaining to importation of our products, the effects of political unrest, war, terrorist activities, or other hostilities; the effects and uncertainties and other factors more fully described in our reports filed with the SEC.
Since it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results, the above list should not be considered a complete list. Further, any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release. We make these forward-looking statements as of the date hereof, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law or regulation.
UNIVERSAL ELECTRONICS INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share-related data)
(Unaudited)
December 31, 2025
December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents
$
32,306
$
26,783
Accounts receivable, net
79,320
114,182
Contract assets
8,091
10,346
Inventories
77,793
79,355
Prepaid expenses and other current assets
6,803
9,478
Income tax receivable
806
2,350
Total current assets
205,119
242,494
Property, plant and equipment, net
27,600
34,207
Intangible assets, net
21,968
24,038
Operating lease right-of-use assets
10,203
14,322
Deferred income taxes
5,496
6,425
Other assets
3,611
1,868
Total assets
$
273,997
$
323,354
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
48,945
$
72,031
Lines of credit
24,079
36,960
Accrued compensation
17,496
20,927
Accrued sales discounts, rebates and royalties
6,132
5,204
Accrued income taxes
2,524
2,161
Other accrued liabilities
20,134
21,008
Total current liabilities
119,310
158,291
Long-term liabilities:
Operating lease obligations
6,193
9,232
Deferred income taxes
1,507
1,931
Income tax payable
74
72
Other long-term liabilities
729
723
Total liabilities
127,813
170,249
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding
—
—
Common stock, $0.01 par value, 50,000,000 shares authorized; 26,146,367 and 25,712,940 shares issued on December 31, 2025 and 2024, respectively
261
257
Paid-in capital
350,222
344,697
Treasury stock, at cost, 13,537,944 and 12,666,443 shares on December 31, 2025 and 2024, respectively
(375,016
)
(371,930
)
Accumulated other comprehensive income (loss)
(19,115
)
(28,350
)
Retained earnings
189,832
208,431
Total stockholders’ equity
146,184
153,105
Total liabilities and stockholders’ equity
$
273,997
$
323,354
UNIVERSAL ELECTRONICS INC.
CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
2025
2024
2025
2024
Net sales
$
87,745
$
110,454
$
368,288
$
394,879
Cost of sales
61,685
79,132
261,827
280,885
Gross profit
26,060
31,322
106,461
113,994
Research and development expenses
5,392
7,044
26,269
29,723
Selling, general and administrative expenses
19,434
23,598
85,375
91,811
Factory restructuring charges
380
862
1,221
3,585
Legal judgment
—
4,172
—
4,172
Operating income (loss)
854
(4,354
)
(6,404
)
(15,297
)
Interest income (expense), net
20
(705
)
(935
)
(3,361
)
Other income (expense), net
(1,920
)
(45
)
(4,621
)
60
Income (loss) before provision for income taxes
(1,046
)
(5,104
)
(11,960
)
(18,598
)
Provision for (benefit from) income taxes
38
(575
)
6,639
5,431
Net income (loss)
$
(1,084
)
$
(4,529
)
$
(18,599
)
$
(24,029
)
Earnings (loss) per share:
Basic
$
(0.08
)
$
(0.35
)
$
(1.41
)
$
(1.85
)
Diluted
$
(0.08
)
$
(0.35
)
$
(1.41
)
$
(1.85
)
Shares used in computing earnings (loss) per share:
Basic
13,065
13,032
13,172
12,959
Diluted
13,065
13,032
13,172
12,959
UNIVERSAL ELECTRONICS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Year Ended December 31,
2025
2024
Cash flows from operating activities:
Net income (loss)
$
(18,599
)
$
(24,029
)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization
14,188
18,058
Provision for credit losses
454
1,081
Gain on sale of property, plant and equipment
(312
)
—
Deferred income taxes
866
(256
)
Shares issued for employee benefit plan
431
1,063
Employee and director stock-based compensation
5,098
6,700
Impairment of long-lived assets
1,309
333
Changes in operating assets and liabilities:
Accounts receivable and contract assets
41,536
(12,174
)
Inventories
4,571
6,239
Prepaid expenses and other assets
5,401
764
Accounts payable and accrued liabilities
(33,226
)
15,733
Accrued income taxes
1,909
1,310
Net cash provided by (used for) operating activities
23,626
14,822
Cash flows from investing activities:
Purchase of Blue Chip Swap securities
(2,544
)
—
Sale of Blue Chip Swap securities
2,314
—
Proceeds on sale of property, plant and equipment
344
—
Acquisitions of property, plant and equipment
(3,875
)
(4,572
)
Acquisitions of intangible assets
(2,990
)
(3,856
)
Net cash provided by (used for) investing activities
(6,751
)
(8,428
)
Cash flows from financing activities:
Borrowings under lines of credit
103,650
102,193
Repayments on lines of credit
(117,222
)
(120,000
)
Treasury stock purchased
(3,086
)
(1,957
)
Net cash provided by (used for) financing activities
(16,658
)
(19,764
)
Effect of foreign currency exchange rates on cash and cash equivalents
5,306
(2,598
)
Net increase (decrease) in cash and cash equivalents
5,523
(15,968
)
Cash and cash equivalents at beginning of period
26,783
42,751
Cash and cash equivalents at end of period
$
32,306
$
26,783
Supplemental cash flow information:
Income taxes paid
$
2,624
$
3,481
Interest paid
$
1,967
$
4,738
UNIVERSAL ELECTRONICS INC.
RECONCILIATION OF ADJUSTED NON-GAAP FINANCIAL RESULTS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
2025
2024
2025
2024
Net sales:
Net sales - GAAP
$
87,745
$
110,454
$
368,288
$
394,879
Adjusted non-GAAP net sales
$
87,745
$
110,454
$
368,288
$
394,879
Cost of sales:
Cost of sales - GAAP (1)
$
61,685
$
79,132
$
261,827
$
280,885
Impairment of long-lived assets (2)
—
—
(1,187
)
—
Stock-based compensation expense
(13
)
(34
)
(55
)
(106
)
Adjusted non-GAAP cost of sales
61,672
79,098
260,585
280,779
Adjusted non-GAAP gross profit
$
26,073
$
31,356
$
107,703
$
114,100
Gross margin:
Gross margin - GAAP (1)
29.7
%
28.4
%
28.9
%
28.9
%
Impairment of long-lived assets (2)
—
%
—
%
0.3
%
—
%
Stock-based compensation expense
0.0
%
0.0
%
0.0
%
0.0
%
Adjusted non-GAAP gross margin
29.7
%
28.4
%
29.2
%
28.9
%
Operating expenses:
Operating expenses - GAAP
$
25,206
$
35,676
$
112,865
$
129,291
Impairment of long-lived assets (2)
—
—
—
—
Stock-based compensation expense
(810
)
(1,650
)
(5,043
)
(6,594
)
Amortization of acquired intangible assets
(207
)
(223
)
(839
)
(909
)
Litigation costs (3)
—
(157
)
—
(689
)
Factory restructuring charges (4)
(380
)
(863
)
(1,221
)
(3,585
)
Legal settlements and judgments (5)
216
(4,172
)
216
(4,172
)
Severance (6)
(1,273
)
(960
)
(3,253
)
(960
)
Lease termination (7)
—
(476
)
(1,302
)
(476
)
Adjusted non-GAAP operating expenses
$
22,752
$
27,175
$
101,423
$
111,906
Operating income (loss):
Operating income (loss) - GAAP (1)
$
854
$
(4,354
)
$
(6,404
)
$
(15,297
)
Impairment of long-lived assets (2)
—
—
1,187
—
Stock-based compensation expense
823
1,684
5,098
6,700
Amortization of acquired intangible assets
207
223
839
909
Litigation costs (3)
—
157
—
689
Factory restructuring costs (4)
380
863
1,221
3,585
Legal settlements and judgments (5)
(216
)
4,172
(216
)
4,172
Severance (6)
1,273
960
3,253
960
Lease termination (7)
—
476
1,302
476
Adjusted non-GAAP operating income (loss)
$
3,321
$
4,181
$
6,280
$
2,194
Adjusted non-GAAP operating income (loss) as a percentage of net sales
3.8
%
3.8
%
1.7
%
0.6
%
UNIVERSAL ELECTRONICS INC.
RECONCILIATION OF ADJUSTED NON-GAAP FINANCIAL RESULTS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
2025
2024
2025
2024
Net income (loss):
Net income (loss) - GAAP (1)
$
(1,084
)
$
(4,529
)
$
(18,599
)
$
(24,029
)
Impairment of long-lived assets (2)
—
—
1,187
—
Stock-based compensation expense
823
1,684
5,098
6,700
Amortization of acquired intangible assets
207
223
839
909
Litigation costs (3)
—
157
—
689
Factory restructuring costs (4)
380
863
1,221
3,585
Legal settlements and judgments (5)
(216
)
4,172
(216
)
4,172
Severance (6)
1,273
960
3,253
960
Lease termination (7)
—
476
1,302
476
Gain on facility closure asset disposal (8)
(841
)
—
(841
)
—
Foreign currency (gain) loss
2,673
132
5,324
326
Income tax provision on adjustments
(948
)
410
5,657
7,511
Other income tax adjustments (9)
—
(1,924
)
—
(1,924
)
Adjusted non-GAAP net income (loss)
$
2,267
$
2,624
$
4,225
$
(625
)
Diluted shares used in computing earnings (loss) per share:
GAAP
13,065
13,032
13,172
12,959
Adjusted non-GAAP
13,302
13,249
13,442
12,959
Diluted earnings (loss) per share:
Diluted earnings (loss) per share - GAAP
$
(0.08
)
$
(0.35
)
$
(1.41
)
$
(1.85
)
Total adjustments
$
0.25
$
0.54
$
1.70
$
1.81
Adjusted non-GAAP diluted earnings (loss) per share
$
0.17
$
0.20
$
0.31
$
(0.05
)
(1)
GAAP gross margin, operating loss and net loss for the three months ended December 31, 2024 include $0.7 million, equivalent to 70 basis points of gross margin or $0.04 per share (net of tax), of excess manufacturing overhead costs resulting from the continued transition of our global manufacturing footprint, specifically in Mexico, and depreciation related to the mark-up from cost to fair value of fixed assets acquired in business combinations ("excess manufacturing costs").
GAAP gross margin, operating loss and net loss for the twelve months ended December 31, 2024 include $4.5 million, equivalent to 110 basis points of gross margin or $0.27 per share (net of tax), of excess manufacturing costs.
(2)
The twelve months ended December 31, 2025 include impairment charges relating to machinery and equipment and leasehold improvements associated with the shut down of our Mexico manufacturing facility. The shut down was completed as of December 31, 2025.
(3)
The three and twelve months ended December 31, 2024 include expenses related to our various litigation matters involving Roku, Inc. and certain other related entities.
(4)
The three and twelve months ended December 31, 2025 include severance and other exit costs associated with the closure of our Mexico manufacturing facility. The three and twelve months ended December 31, 2024 include severance and other exit costs associated with the closure of our southwestern and eastern China factories and the streamlining of our Mexico manufacturing facility.
(5)
The three months and twelve months ended December 31, 2025 include a legal settlement payment received. The twelve months ended December 31, 2024 includes an adverse judgment against one of our China subsidiaries.
(6)
The three and twelve months ended December 31, 2025 and 2024 include severance costs associated with a global reduction in force primarily impacting roles within the selling and general administration functions as well as engineering and research and development functions. Additionally, the twelve months ended December 31, 2025 include severance payments related to the Transition Agreement and Release of Claims dated March 19, 2025 between Paul D. Arling and the company.
(7)
The twelve months ended December 31, 2025 include costs resulting from the abandonment of our office space in Carlsbad, California. The three and twelve months ended December 31, 2024 include lease termination costs associated with one of our Mexico facilities.
(8)
The three and twelve months ended December 31, 2025 include non-ordinary gains on asset disposals resulting from the closure of our Mexico factory.
(9)
The three and twelve months ended December 31, 2024 include a $0.4 million valuation allowance recorded against the deferred tax assets at our eastern China entity as a result of its shutdown as well as a $2.3 million adjustment due to the revaluation of net deferred tax assets at our remaining China factory resulting from the expiration of a tax incentive that increased the statutory rate.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260312607702/en/
UEI: Wade Jenke, CFO, UEI,
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